Colorado EV Tax Credits & the VXC Program
Colorado EV Tax Credits & the VXC Rebate
Colorado is one of the best states in the country to go electric. Between the Vehicle Exchange Colorado (VXC) rebate and the state’s Innovative Motor Vehicle Credit, qualified buyers can save thousands on a new or used EV — and if you qualify for both, they stack.
Vehicle Exchange Colorado (VXC) Rebate
VXC is a point-of-sale rebate that helps income-qualified Coloradans trade in an older, high-emitting vehicle for a cleaner EV. The rebate comes off the price right at the dealership — you don’t wait for tax season.
Do you qualify?
- Income-qualified — household below 80% of Area Median Income, or enrolled in a qualifying assistance program.
- Trade in an eligible vehicle — typically 12+ model years old, or one that fails emissions testing.
- That vehicle is titled and registered in Colorado with no lien, and is recycled.
- One VXC rebate per tax household.
- Buying or leasing (lease term at least 2 years).
How to get it
- Confirm your eligibility on the state VXC portal (or ask us and we’ll help you check).
- Choose an eligible new or used EV at Emich Volkswagen.
- We apply the rebate at the point of sale — it comes straight off your price.
Colorado State Tax Credit IMVC · 2026
The Colorado Innovative Motor Vehicle Credit (IMVC) is a refundable state tax credit for new EVs, plug-in hybrids, and hydrogen vehicles titled and registered in Colorado. It’s separate from VXC — and most buyers can use it whether or not they qualify for VXC.
2026 amounts
| Base credit (MSRP $35,000–$80,000) | $750 |
| Add-on if MSRP is under $35,000 | +$2,500 |
| Maximum in 2026 | $3,250 |
The credit is refundable and scheduled to change in future years — ask us for the current figure when you buy.
How to claim it
- Buying? Claim the credit on your Colorado tax return (Form DR 0617) after purchase.
- Leasing? The credit can be assigned to VW at the point of sale (Form DR 0618) so it lowers your deal up front.
- Not sure which is better for you? We’ll walk you through it before you sign.
Which vehicles qualify
| Vehicle type | VXC rebate (new / used) | State credit (IMVC) |
|---|---|---|
| BEV — full electric | $9,000 / $6,000 | Yes |
| PHEV — plug-in hybrid | $9,000 / $6,000 | Yes |
| FCEV — hydrogen | Not currently | Yes |
Can you stack VXC and the state credit?
Often, yes — if you qualify for both, the VXC rebate and the IMVC state credit can be combined. Here’s a simplified illustration for a new EV under the price caps.
Illustration only. Your actual total depends on your household eligibility, your trade-in vehicle, the EV you choose, MSRP and price caps, and available program funding.
Federal EV Tax Credit — 2026 Status
The federal clean vehicle tax credit ended for vehicles acquired after September 30, 2025. For 2026, Colorado’s VXC rebate and IMVC state credit are the primary EV savings programs for most buyers — which is what this page focuses on.
Shop Volkswagen EVs at Emich
Explore the electric Volkswagens that may be eligible for Colorado EV incentives.